Paper Mill Playhouse in Millburn to break even this year after almost closing

Photo by T. Charles EricksonSmokey Joe's Cafe, Songs of Leiber and Stoller, directed by Mark S. Hoebee at the Papermill Playhouse, 4/7-5/2/10.MILLBURN -- When the Paper Mill Playhouse asks its audience to describe the theater in terms of food, the answers tend to be the same.

Gone are edgy re-interpretations and revivals of long-forgotten titles. In their place are family-friendly shows with familiar names, co-produced with other regional theaters.

That artistic vision, coupled with a sound financial plan, fuels the theater’s continuing turnaround. Three years after it almost closed for good, Paper Mill is on track to break even this year, a near-miracle in the slumping economy. The reason? It slashed expenses, reached an innovative deal with Millburn that brought an infusion of cash and recruited new board members to aid in its recovery.

If Paper Mill can fill more of its 1,200 seats, it could have the happy ending few predicted.

"The culture of Paper Mill had to change. We all knew that," said Jones, who has been at the helm of the state’s largest nonprofit theater for about 2 1/2 years. "But complex institutions can’t be changed with a sledge hammer."

Today's glitzy gala — "Reaching for the Stars: Paper Mill Playhouse Soars into its 72nd Year" — is being held at the Short Hills Hilton, with "Wicked" and "Godspell" composer Stephen Schwartz headlining.

This season’s final show, "Peter Pan," begins a four-week run June 2 and more crowd-pleasers are on the horizon with next season’s five musicals: "Hairspray," "Les Miserables," "The 25th Annual Putnam County Spelling Bee," "A Funny Thing Happened on the Way to the Forum" and "Curtains."

Jones and artistic director Mark Hoebee hope audiences respond. Subscriptions hover at 16,500, down from 26,000 in 2000 and about one-third of their peak in the 1990s. Attendance must improve for the recovery to be successful, he said.

"There’s a restlessness to see the results," said Jones, noting the staff has sacrificed raises for two years. The recession has slowed donations and kept people at home, he said. But when the economy recovers, the theater will be poised to grow.

"We’ll get there, but we still have a lot of hurdles," he said.

Much has changed in Millburn since The Crisis — the staff’s term for the April 2007 turmoil. Just days before the opening of "Seven Brides for Seven Brothers," Paper Mill officials appealed to the public for an immediate infusion of cash to make payroll and keep the show on stage.

They raised enough money — and public awareness — to make it through "Seven Brides" and "Pirates!," the season’s final two shows. With the crisis averted, the theater’s leadership had to find a way to dig out of its financial hole.

First, it tackled expenses. The theater closed its Edison scene shop and cut staff to 42. Agreements with all five unions — from musicians to actors to stage hands — included wage freezes, benefit reductions and changes to the contracts that helped the theater keep costs down.

"They recognized that everybody’s got to pitch in," said William Engel of the Hyde & Watson Foundation, a supporter of the theater. "They have done a pretty good job working with all constrictions of the unions to get sense of shared sacrifice."

Jones and company eliminated one of the six shows this season and reduced all runs from five weeks to four. The 20 weeks of performances is 10 fewer than last year, almost half of the shows presented as recently as 2005.

At the same time, the theater embraced the notion of sharing shows with other regional organizations. Next season, co-productions with Theatre Under the Stars in Houston and the Philadelphia Theatre Company will keep expenses down as the costs of designers, sets, costumes and publicity are split among the partners. Next year’s budget is projected at $15.2 million, significantly less than the $18 million plans of Jones’ predecessors.

"Paper Mill used to be insulated, isolated," Hoebee said "Partnership and collaboration were not part of the language."

The collaboration extends to the community. In the sale-lease back agreement with Millburn Township in 2008, the theater sold its land and buildings to the town for $9 million and used the proceeds to pay off a $4 million debt and balance its annual budget. It invested the remaining $4.1 million, though it needed $1 million to balance
last year’s books.

Perhaps the most significant evidence of the theater’s evolution is its board of trustees. Slow to react to 2007’s financial collapse, the board is more active now, especially in its fundraising, Jones said. This year, each of the 25 members has given a personal donation, Jones said, for a total of $431,500 so far. That compares to just 16 gifts totalling $117,000 in 2005.

Tim Gordon, the Millburn Township administrator and a board member, said the changes are crucial to the theater’s future.

"They realize the closer they get to the goal, the tougher it’s going to be," Gordon said. "I think they’re up to the challenge."